1. In case of a home loan for the second property, no tax benefit is available on principal repayment on the second loan.
2. However, the entire interest cost on the second house’s loan can be deducted from the taxable income.
3. Whether the second house is purchased purely as an investment option or a weekend getaway, the interest paid on a loan taken to buy it is tax-deductible.
4. Even if the second house is lying vacant, it will be considered that it has a rental value, and the notional or deemed income will be added to your taxable income.
5. You can deduct expenses, such as municipal or property taxes actually paid, from the deemed income (or the actual income).
6. Moreover, 30% of net annual value, which is difference between rental income and municipal taxes, is also allowed as a standard deduction.
7. In case the house is rented out, 30% of actual rent can be deducted from the taxable income.
8. Other charges like property tax and municipal tax can also be deducted.
2. However, the entire interest cost on the second house’s loan can be deducted from the taxable income.
3. Whether the second house is purchased purely as an investment option or a weekend getaway, the interest paid on a loan taken to buy it is tax-deductible.
4. Even if the second house is lying vacant, it will be considered that it has a rental value, and the notional or deemed income will be added to your taxable income.
5. You can deduct expenses, such as municipal or property taxes actually paid, from the deemed income (or the actual income).
6. Moreover, 30% of net annual value, which is difference between rental income and municipal taxes, is also allowed as a standard deduction.
7. In case the house is rented out, 30% of actual rent can be deducted from the taxable income.
8. Other charges like property tax and municipal tax can also be deducted.